1. Debbie Henderson, Program Administrator
Incentives
North Carolina Child Support Services
A general overview of what they are and how they are calculated.
Debbie Henderson, Program Administrator

2. What Are Incentives?
Primary source of Child Support Services Funding is Federal Financial Participation (FFP) at a rate of 66%.
Secondary source of Child Support Services is the Annual Incentive Awards.
Based on a state’s performance in five (5) performance measures.
Paid each year from a fixed amount of money set by the Child Support Performance Incentive Act of 1998 (CSPIA).
FFY 2016 incentive pool = $558 million.
FFY 2017 incentive pool = $563 million.

3. Incentives are paid each year from a fixed amount of money set by CSPIA. Each State and Territory that meets performance and data reliability standards receives a portion of this fixed amount
EXAMPLE
Incentive Pool
$100 million

4. Data Reliability | Performance | Incentives$
DATA %

5. Data Reliability | Performance | Incentives$
DATA %
POSSIBLE PENALTIES
UNRELIABLE DATA

6. Penalties for Performance Below Standards
Performance measures for which states must achieve certain levels of performance in order to avoid being penalized for performance below standards.
Paternity Establishment
Cases under order
Current Collections

7. The Cycle Quarterly NCCSS provides to OCSE
Collections Expenditure/Estimates Reports
(OCSE-34 & OCSE-396)
OCSE provides to NCCSS
Awards/Advancement/ Reimbursements
Annually
Performance Data
(OCSE-157)
OCSE conducts a Data Reliability Audit/Review
Annually OCSE provides to all states annual settlement
1st or 2nd Quarter of FFY 2019 (FFY2017 Settlement)
FFY October 30, 2018
January-June 2019 (FFY 2018)

8. The Cycle Quarterly NCCSS provides to OCSE
Collections Expenditure/Estimates Reports
(OCSE-34 & OCSE-396)
OCSE provides to NCCSS
Awards/Advancement/ Reimbursements
Annually
Performance Data
(OCSE-157)
OCSE conducts a Data Reliability Audit/Review
Annually OCSE provides to all states annual settlement
1st or 2nd Qtr of FFY 2019 (FFY2017 Settlement)
FFY October 30, 2018
January-June 2019 (FFY 2018)

9. OCSE-157 Report
OCSE-157 is used by all states to report statistical and some financial information regarding outcomes for their Child Support Services program to the Federal Department of Health and Human Services. The information is then used to provide an annual report to Congress on the program.

10. % Paternity Establishment % Cases Paying Towards Arrears
The Measures
Collections $
% Paternity Establishment
% Cases Under Order
% Cases Paying Towards Arrears
% Current Support
% Cost Effectiveness

11. The Measures Collections
Current TANF $
Former TANF $
Never TANF $

12. % Paternity Establishment % Cases Paying Towards Arrears
The Measures
% Paternity Establishment
% Cases Under Order
% Cases Paying Towards Arrears
% Current Support
% Cost Effectiveness

13. The Measures Calculated by using Numerator Denominator
To increase the % (performance)

14. The Measures Paternity Established
Line 6 OCSE 157 Children BOW in IV‑D Cases Open During or at the End of the Fiscal Year With Paternity Established or Acknowledged
Line 5a OCSE 157 Children in IV‑D Cases Open at the End of the Prior Federal Fiscal Year Who Were Born Out-of-Wedlock

15. The Measures Cases Under Order
Line 2 OCSE 157 Cases Open at the End of the Fiscal Year With Support Orders Established
Line 1 OCSE 157 Cases Open at the End of the Fiscal Year

16. The Measures Current Support
Line 25 OCSE 157
Total Amount of Support Distributed as Current Support During the Fiscal Year
Line 24 OCSE 157
Total Amount of Current Support Due for the Fiscal Year

17. The Measures Cases Paying Towards Arrears
Line 29 OCSE 157 Cases Paying Toward Arrearages During the Fiscal Year
Line 28 OCSE 157 Cases with Arrears Due During the Fiscal Year

18. The Measures Cost Effectiveness
IV-D Dollars Collected
IV-D Dollars Expended

19. Incentive Calculations
Data Reliability
Measures and Weights
Performance Levels/Standards
Collections $
% Paternity Establishment
% Cases Under Order
% Cases Paying Towards Arrears
% Current Support
Cost Effectiveness
% Paternity Establishment & % Cases Under Order
% Current Support
&
% Cases Paying Towards Arrears
Cost Effectiveness

20. The Applicable Percentage Is:
If the Paternity Establishment or Support Order Performance Level Is:
At Least:
But Less Than:
The Applicable Percentage Is:
80%
100%
64%
65%
74%
79%
98%
63%
73%
78%
96%
62%
72%
77%
94%
61%
71%
76%
92%
60%
70%
75%
90%
59%
69%
88%
58%
68%
86%
57%
67%
84%
56%
66%
82%
55%
54%
53%
52%
51%
50% 0%

21. The Applicable Percentage Is:
If the Current Collections or Arrearage Collections Performance Level Is:
At Least:
But Less Than:
The Applicable Percentage Is:
But Less Than:
80%
100%
59%
60%
69%
79%
98%
58%
68%
78%
96%
57%
67%
77%
94%
56%
66%
76%
92%
55%
65%
75%
90%
54%
64%
74%
88%
53%
63%
73%
86%
52%
62%
72%
84%
51%
61%
71%
82%
50%
70%
49%
48%
47%
46%
45%
44%
43%
42%
41%
40% 0%

22. The Applicable Percentage Is:
If the Cost-Effectiveness Performance Level Is:
At Least:
But Less Than:
The Applicable Percentage Is:
$5.00
100%
$4.50
$4.99
90%
$4.00
80%
$3.50
70%
$3.00
60%
$2.50
50%
$2.00
40%
$0.00 0%

23. Federal to State Compared vs. State to County
Methodology
Similar, but while there are penalties for unreliable data/standards for the state, there is no penalties presently for counties.
Incentive Measures
Data collected via CSDW
Collections
Federal – OCSE-34
County – County administration reports
Expenditures
Federal – OCSE-396
Payment schedule
Federal – Quarterly
County – October – June, equal monthly payments

24. Reinvestment of Incentive
U.S.C. 658a(f) -- Reinvestment
A State to which a payment is made under this section shall expend the full amount of the payment to supplement, and not supplant, other funds used by the State - (1) to carry out the State plan approved under this part; or (2) for any activity (including cost-effective contracts with local agencies) approved by the Secretary, whether or not the expenditures for the activity are eligible for reimbursement under this part, which may contribute to improving the effectiveness or efficiency of the State program operated under this part.

25. Reinvestment of Incentive
Translation
The full amount of incentive payments received must carry out IV-D program activities or other activities which may contribute to improving the effectiveness or efficiency of the State’s IV-D program
A base amount is determined for each state
This base amount of spending must be maintained in future years
Incentive payments under this part must be used in addition to (supplement), and not in lieu of (supplant) the base amount.

26. Allowable Uses for Child Support Incentive Funds
Incentive funds may be used for program activities including, but not limited to:
Parent locator services (Source: 45 CFR (a))
Paternity and support services (Source: 45 CFR (a))
Privatizing and outsourcing of child support functions (Source: 45 CFR (a))
Improving automation (Source: 45 CFR )

27. Allowable Uses for Child Support Incentive Funds (continued)
Costs of cooperative arrangements with courts and law enforcement officials (Source: 45 CFR )
Equipment (Source: 45 CFR )
Creating public awareness projects for allowable IV-D program activities
Staff development for allowable IV-D program activities
Community outreach programs for allowable IV-D program activities.

28. Incentive Waivers Using Child Support Funds for Other Activities
Fatherhood Programs
Education & Job Programs for Noncustodial Parents
Visitation

29. Incentive Waiver Process
Justification Letter on County Letterhead
Complete Incentive Waiver Application & Budget
Submit to the NC CSS Central Office
Central Office Staff Review
Submit to Federal Regional Office of Child Support (OCSE) for Review
Submit to Federal Office of Child Support in Washington, DC
Approval Letter Sent to NC CSS Central Office
(NOTE: Incentive Waiver Period is 12-months from the date of approval)

30. Incentive Waiver Requirements Upon Approval
Monthly Progress & Expense Reports Submitted to NC CSS Central Office
Renewal of Waivers are Submitted 90 Days Before Waiver Period Ends

32. Incentives North Carolina Child Support Services
Debbie Henderson, Program Administrator